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PREPARATORY ACADEMY Business Plan
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PREPARATORY ACADEMY
TABLE OF CONTENTS
I. Executive Summary......................................................................................................................4
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Executive
PREPARATORY ACADEMY Summary
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Company
PREPARATORY ACADEMY Description
Mission statement
The long-term outlook for Scholars & Builders Construction is for it to be wholly
controlled by previous YouthBuild graduates within the next five years, as well
as standing as a single entity. YB strives for affordable, efficient and quality
service to our community members in need.
Company goals
Target Market
Our target market includes homeowners in the Providence area that need
repairs or renovations at a low cost and locations identified by Every home
initiative-- abandoned houses or buildings in the community that need to be
renovated for potential occupants.
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Company
PREPARATORY ACADEMY Description
Industry
There are several competitive aspects of the construction industry that Scholars
& Builders Construction must take into consideration. The construction industry
is growing rapidly with technological advances. Therefore, the respective business
will be forced to keep up with the ongoing innovations to keep projects running
as efficiently and effectively as possible. However, Scholars & Builders Construction
will specifically be catering to a low-income community that otherwise would
not be able to receive services of this type. Scholars & Builders Construction will
grow alongside these advances in this industry, as well as maintain and strengthen
our competitive advantages over other competitors. Scholars & Builders
Construction is training their employees at a young age and recruiting them
from the YouthBuild program where they learn to renovate, deconstruct, and
manage an overall project.
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Products
PREPARATORY ACADEMY & Services
Services Provided
The service that Scholars & Builders Construction provides thrives on catering to
Providence homeowners seeking repairs or renovations on their homes. These
targeted customers are low-income to moderate-income homeowners who are
seeking to receive these services at a discounted and affordable rate. Our services
are provided by young adults who have previously graduated from YouthBuild
Providence Construction Academy and want to pursue a future occupation in the
construction industry.
Scholars & Builders Construction provides repair and renovation services to home-
owners in the Providence area. Our business will provide these services at a lower
and affordable price than other competitors as our targeted market is low-income
homeowners who desire this discounted rate. This is one of our strong competitive
advantages because our other competitors ignore this customer base as they are
seeking to maximize their profits.
The service’s strongest competitive advantage is our pricing strategy. Services will
be priced in the low-end to attract customers to the newly implemented service.
Our competitors may have employees with more experience than our Scholars
& Builders Construction workers; our affordable prices will push customers away
from our competitors and pull them towards us.
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Marketing
PREPARATORY ACADEMY Plan
Industry Analysis
The following image depicts the industry size, growth rate, and projected sales:
Key Statistics
7.5%
Multi-family
Major Market 7.8%
housing
Segmentation Office
Building
(2017)
9.0%
Retail
building
Total $12.7 bn
51.8%
Single-family
housing
23.9%
Other
nonresidential
building
Source: www.ibisworld.com
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Marketing
PREPARATORY ACADEMY Plan
Industry Trends
SWOT Analysis
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Marketing
PREPARATORY ACADEMY Plan
Weaknesses: One weakness to the program are the participants’ young age and limited
experience in the field. The Scholars & Builders Construction project is relatively new in
the construction field although it is an asset of the already successful YouthBuild program.
As it grows, it shows promise and commitment through integration within the community
and its already established members.
Threats: The Scholars & Builders Construction project has several competitors in the
Rhode Island area: Many contractors provide quality service at an affordable price.
However, what makes Scholars & Builders stand apart from the crowd is by accumulating
the capital received and giving back to the Providence area, this allows the company to
generate a sustainable business surpassing the competition.
Barriers to Entry: Being a new start-up company, our barriers to entry include gaining
the consumer awareness. The mission of Scholars & Builders Construction is to
decrease costs for struggling communities and increase employment for students within
the YouthBuild Program. Part of the problem will be to differentiate this business from
the YouthBuild program. The mission of Scholars & Builders Construction mission is
also to employ, not educate. Education will be completed via the Youthbuild Program;
Scholars & Builders Construction offers on the job training for the advancement of
individual skills. Although similar, the two are not conjoined. Because of start-up funding
of one hundred thousand dollars, budgeting ten thousand dollars per renovation, there
is no need for concern over exorbitant startup costs.
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Marketing
PREPARATORY ACADEMY Plan
Target Market
Future customers would be those who have completed the Scholars & Builders
Construction and are seeking employment. Scholars & Builders Construction
offer the opportunity for low-income clientele to find stability through occupation
in the construction field. By being trained through the program increases a
chance for employment because the organization hires internally, reducing
competition for individuals.
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Marketing
PREPARATORY ACADEMY Plan
Client Demographic
• Homeowners possessing low income
• Within the Providence Area
Clients must own a residential property. Scholar and Builders will not accept
jobs from renters. For these reasons our consumers need to own the space
in which they are living or have permission to modify it.
Other reasons a client might seek these services include the ability to pro-
vide services below market price. Those with little disposable income may
see home reconstructing as a luxury expense in which they are unable to
fund. The ability of Scholars & Builders Construction to drop prices allows
low-income residents access to services they could not otherwise afford.
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Marketing
PREPARATORY ACADEMY Plan
Positioning/Niche
Scholars & Builders Construction is unlike other companies because it is not searching
for profit. Instead, it is focused to educate and provide work for those who without
this program might not have a stable job or a job at all. This program is ingrained in
the community by reaching out and rebuilding Providence, employing individuals, and
enabling the citizens of the city to enjoy the finishing products of Scholar to Build.
Compared to other construction companies in the area, the Scholars & Builders Con-
struction project is a non-profit organization. The program gives back to the community
by continuing to educate to decrease unemployment rates. By hiring Scholars & Builders
Construction workers, the employer is funding the program itself- enabling it to expand
and generate opportunity for future employees.
Scholars & Builders Construction focuses on the education of students and giving to
the community- traits in which 90% of organizations cannot claim. Our identity as a
community-based service organization will greatly impact the way we market ourselves-
taking into consideration its direct and indirect costs and several potential forms of
media. Scholars & Builders Construction should implement a low-cost marketing
system because of its non-profit relationship with clients.
Due to the nonprofit’s desire to greatly impact students and that the upcoming program
is associated to respect and charitable within the community, Youthbuild Preparatory
Academy is suggested to minimize its marketing expenses. The firm’s mission and
nonprofit objective allow us access to news outlets most other firms pay for. Humanities
natural demeanor toward heartwarming stories allows Scholars & Builders Construction
access to free public relations advertising.
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Marketing
PREPARATORY ACADEMY Plan
This same reasoning fosters word of mouth advertising across project consumers
and contributors. Exponential expansion across a tightly knit community, paired with
preexisting name recognition ensures an informed market.
Outside of public promotions are other low-cost marketing methods. Market and
technological trends have made social media marketing a must have for any modern
business. Built off of a pre-existing internet presence, Scholars & Builders Construction
can use sites like Facebook and Instagram to show potential consumers a company
connected to the betterment of its employees as well as a firm conducting exceptional
work. This might consist of posts displaying recent projects and refurbished homes
alongside community oriented posts furthering the firm's credibility and emotional
rhetoric. Scholars & Builders Construction s ability to tell the stories of its students,
workers, and now consumers articulate a message no other business can.
Consumers awareness to and evaluation of the impact firms have on their operating
environment has forced firms into environmental consciousness; environmental meaning
not only the state of nature but even more so the people being affected by the firm's
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Marketing
PREPARATORY ACADEMY Plan
operations. Market trends are forcing firms to grant educational opportunities to their
employees, give back to the communities in which they operate, and provide products
and services both their workers and consumers can be proud to have been a part of;
Scholars & Builders Construction has been doing every one of these things since its
conception. So long as we continue fostering and deserving the community-driven
perception we deserve, this firm can rely entirely on public relation marketing strategy.
Promotional Budget
Understanding YouthBuild’s public presence and the name recognition associated with
that the business has the opportunity to capitalize on the public relations marketing
they have been practicing dating back to their inception. By offering specialized
educational programming to the communities’ youth, a brand of honesty and integrity
is well established. For this reason, we have decided to utilize news sources and social
media to display the projects we create and the message we embody.
Distribution Channels
Scholars & Builders Construction branching from Scholars & Builders Construction
educational programs is a partnership detrimental to its survival. This immediate consum-
er association between brands allows for immediate credibility from not only Scholars
& Builders Construction but the government programs sponsoring it. Because Scholars
& Builders Construction is offering a service, not a product, the firm is limited in its
ability to connect with customers. Consumers can gain access to our services in two
ways; through our website or direct contact with the organization. This includes phone
and email, but overcoming a lack of wholesalers and communal outreach can trump
other distributors.
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Operational
PREPARATORY ACADEMY Plan
We will produce our service by having the people within Scholars & Builders
Construction working on projects for the community. The Scholars & Builders
Construction will efficiently help repair necessary fixtures and what not. There will
be equipment needed to ensure a safe environment for the work that is going to
be done. Each Scholar to Builder will be equipped with a tool belt filled with useful,
necessary tools to accomplish the project.
Scholars & Builders Construction will keep their consistency by following their specific
methods for each project. The quality control procedures that will be included in the
project will be meant to meet our goals. We will first make sure that all of the permits
are up to date and no corners are cut. We will also make it a priority to know the
exact type of standards we are working with because that will make a big difference
if we miscalculate something that may have a significant impact on something else.
There is a vast importance in knowing if all the units are up to par, because if they
are not we need to know immediately to facilitate our working regime. Our client/
customers are the only people that we must adhere to by making sure everything is
perfect for their vision.
Scholars & Builders Construction will be located in Providence, Rhode Island. The
type of building that we will be acquiring will be used an industrial area, in the sense
of us being a construction building business. The building will be used as a way for
clients to come in and openly express that they want help with the repairs in their
home or what not. The environment will be inviting and welcoming.
We are going to be located at 301 Harris Ave in Providence, RI The size of the location
will include about 3,000 square feet and the building will be considered as commercial.
The building is going to be rented out for $27,000 a year, and the rent will be $2,250
a month. Along with their maintenance and utilities, they will be paying roughly 25%
of it from their rent.
Legal Environment
Scholars & Builders Construction will be applying for a general contractor's license with the
state in January 2018. The employees will need to be going through one year of construction
training that will better familiarize them with certain skill sets. The Project Managers will be
in charge of all the permits that are going to be needed for each project. Since we are
going are a start-up, we will be focusing on having one team. The team will include three
employees and a foreman to make sure things are going smoothly. As we further expand,
we will be increasing our numbers in teams to further grow in the future.
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Operational
PREPARATORY ACADEMY Plan
Under the Occupational Safety and Health Act (OSHA), employers are required to provide
their employees with working conditions free of any known dangers. Congress created
OSHA to assure safe and healthful conditions for working men and women by setting
and enforcing standards and providing training, outreach, education and compliance
assistance. Two standards that are pertinent and essential for the Scholars & Builders
Construction Providence project are Title 29, Code of Federal Regulations Part 1910 and
1926 where it explains various training requirements in which employees must meet or
comply.
Rhode Island’s Department of Inspections and Standards promotes the general health,
safety, and health of citizens of Providence by enforcing City, State, and Federal codes
relating to buildings and properties. These codes all assure safe and adequate structures/
housing, eliminate the potential growth of mold or any other infestation, and allow
economic development and retain businesses.
According to the Rhode Island Department of State website, the first step is to contact
the Providence City Town Hall and check for eligibility. In doing so, the individual
determines whether there are specific zoning requirements for the business and they
are informed of any licenses or permits that one the individual will need. They also will
need to fill out an Application for Certificate of Authority for a Non-Profit Corporation
where the individual will fill out the organization’s name, purpose, the board of directors;
along with paying the filing fee of $35, and informed of how to keep the business
continuously allowed or maintain its status.
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Operational
PREPARATORY ACADEMY Plan
As per clothing regulations, there are certain clothing attires that need to be taken into
consideration. All of the employees within the organization should look appropriate
by upholding neatness and professional dress and grooming. Dressing professionally
means you use a good sense of judgment and if you question your attire, then you
know it may not be appropriate. If your work attire is inappropriate, then you will be
talked to by HR to address the problem.
Things that would not be appropriate in the workplace would include no visible piercings
except for earrings and tattoos, sandals, tight shirts, no offensive slogans or images, etc.
For the business, we will need to acquire directors, managers, trainers and employees
that will be doing the manual labor of the project. There will need to be a construction
manager on-site to make sure everything is going according to plan. These directors
and managers should be licensed that way they can be a beneficial resource for the
workers. We will most likely be dividing and conquering the business with around 200
employees. The personnel that we decide to hire will be based on their qualifications.
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Management
PREPARATORY ACADEMY & Organization
BIOGRAPHIES
Directors of YBPA
Name: Anthony
Job Title: Executive Director
Education: Master’s Degree in Business Management and Finance
Our program is delivered by highly qualified staff, who collectively possess over 25
years of Scholars & Builders Construction experience. Anthony Hubbard, Executive
Director of YBPA, oversees all operations, management, and planning of the program
and has led our program since 2008, after holding management positions since 2005.
He maintains a strong working relationship with YBUSA and local education agencies.
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Management
PREPARATORY ACADEMY & Organization
BIOGRAPHIES
Owner/Developer
No matter how many people are above you on the organizational ladder, the owner/
developer is always your ultimate boss. This is your client—the person who dictates
the project budget and schedule within the limitations described by the construction
manager and general contractor.
General Contractor
The general contractor is responsible for coordinating all of the various tradespeople
(subcontractors) and suppliers on the project. The general contractor is hired by and
answers to the owner/developer.
Construction Manager
The construction manager plays a role similar to the general contractor, but with a
lower level of financial liability because he works directly for the owner. The construction
manager needs a strong combination of technical and people skills. The construction
manager is responsible for various administrative functions, including preparing and
monitoring budgets, scheduling, supervising subcontracts, and hiring, training and
disciplining site staff. They will also manage the renovation, rehabilitation, or construction
of affordable housing units and the on-site construction training of young people,
including the supervision of the construction trainers or crew leaders.
Subcontractor
Think of subcontractors as skilled tradespeople—plumbers, electricians, riggers, brick-
layers, and so on. Sometimes, subcontractors are hired to sign off on work for which a
license is necessary. At other times, subcontractors perform portions of larger jobs to
accelerate or keep projects on schedule. Sometimes, a Scholars & Builders Construction
Program plays the role of the subcontractor, taking responsibility for demolition,
carpentry, and other specified tasks appropriate for training.
Foreman
A foreman typically works on small projects in which they would need to employ only a
few people. They are in charge of directing personnel to do their jobs to complete the
project and may include training or discipline requirements. Administrative responsibilities
often involve planning and coordinating a job, ordering materials and managing man-
power to ensure the job is completed on time and within budget. For construction
foreman who is responsible directly to customers, customer service duties may include
everything from selling a project to being personally responsible for its delivery. In other
cases, foremen may have to give progress reports and tours to customers.
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Management
PREPARATORY ACADEMY & Organization
BIOGRAPHIES
1. Owner/Developer
2. General Contractor
3. Construction Manager
4. Subcontractor
5. Foreman
The YBPA Board of Trustees oversees over all matters related to the program's fiscal
management and ensures accounting policies are consistent with generally accepted
accounting principles. This includes the review of monthly accrual accounting/financial
statements, oversight of the independent audit, review of independently audited financial
statements, and submission of said statements to funders upon request.
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Management
PREPARATORY ACADEMY & Organization
EXECUTIVE
DIRECTOR
Anthony Hubbard
CONSTRUCTION
LEGAL COUNSEL/ SAFETY
MANAGER ARCHITECT
SECRETARY COORDINATOR
Chenn Chhork
CONSTRUCTION
TRAINER
Cesar Ramirez
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YouthBuild Providence Scholars & Builders Constuction | 301 Harris Avenue | Providence, RI 02903 | 401-273-7528